OpenAI Denies Endorsement of Robinhood’s ‘OpenAI Tokens’

OpenAI has issued a statement clarifying that the digital tokens trading under its name on Robinhood’s new blockchain platform do not represent OpenAI equity and were listed without the company’s consent. The artificial intelligence developer emphasized that these ‘OpenAI tokens’ are not affiliated with OpenAI equity and that the company did not partner with Robinhood, nor was it involved in the listing. OpenAI explicitly stated that it does not endorse the tokens and that any transfer of OpenAI equity requires the company’s approval, which was not granted in this case. The company advised investors to be cautious, underscoring that any equity movement in the private firm must be approved by its board.

This clarification from OpenAI follows an event held by Robinhood on June 30 in Cannes, France, where CEO Vlad Tenev demonstrated a tokenized stock trade for an “OpenAI” position on the broker’s forthcoming layer-2 blockchain. The network, built with Arbitrum technology, is designed to allow eligible European users to trade more than 200 US equities and exchange-traded funds 24/7 with no commissions or spreads. The shares will be converted into on-chain tokens for transfer and settlement. The presentation helped push Robinhood’s class-A shares up, extending a month-long rally. However, market chatter soon began treating the demo asset as de facto OpenAI equity, despite the company remaining privately held.

Robinhood’s initiative is part of a broader campaign to shift conventional equities onto public blockchains. In late June, Dinariwon broker-dealer registration for a subsidiary, positioning it to distribute its tokenized “dShares” to US brokerages after completing SEC onboarding. The firm already issues blockchain-recorded shares to non-US users and states that it will settle future trades on a public chain while routing orders through registered market centers. Kraken has launched a 24/7 platform for tokenized US stocks, and Coinbase has requested clearance from the SEC to roll out a similar service. Proponents of this shift argue that putting equities on-chain trims clearing fees, shrinks settlement times to near real-time, and enables continuous trading.

OpenAI’s disavowal of the ‘OpenAI tokens’ highlights the complexities and potential pitfalls of tokenizing traditional assets. The incident underscores the importance of clear communication and regulatory compliance in the rapidly evolving landscape of digital assets. As more companies explore the use of blockchain technology for equity trading, it is crucial for all parties involved to ensure transparency and adherence to legal standards. This event serves as a reminder for investors to exercise caution and conduct thorough due diligence when engaging with new financial instruments, especially those that claim to represent equity in high-profile companies like OpenAI.